Merton leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Merton will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| The Mortgage Works |
Lease extensions in Merton can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Merton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor owned a high value apartment in Merton being sold with a lease of just over 61 years unexpired. Connor informally spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Connor to invoke his statutory right. Connor procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last Summer we were approach by Ms Francesca Norbert , who completed a studio apartment in Merton in April 2006. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Similar premises in Merton with a long lease were in the region of £242,600. The average ground rent payable was £45 collected yearly. The lease elapsed on 1 November 2093. Taking into account 67 years unexpired we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including legals.
Last year we were approach by Dr V Simon , who completed a one bedroom flat in Merton in June 1997. The question was if we could estimate the price could be for a 90 year extension to my lease. Similar flats in Merton with an extended lease were valued about £280,000. The average ground rent payable was £55 billed every twelve months. The lease concluded in 2104. Considering the 78 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.